Slide 1: 1Q 2018 Results Presentation
Stringing Energy Automation Integrated Solutions Provider Railway Trencher 1Q 2018 Results Presentation www.tesmec.com 3rd May 2018
Slide 2: Index
Index > Corporate Strategy > 1Q 2018 Results > 2018 Outlook 3rd May 2018 2
Slide 3: The 4 Business Units
The 4 Business Units STRINGING ENERGY ENERGY AUTOMATION > Overhead power lines > Telecommunication & construction & maintenance Teleprotection > Reconductoring and line > Electronic integrated sensors, improvement fault detection and measurement FULLY > Protections & Electronics for > Underground ca
Slide 4: Tesmec: From Steel to Sustainable Technology
TESMEC “ From Steel to sustainable Technology ” OUR MISSION > Value added integrated solutions provider in the market of infrastructure for the transport of energy, data and material > Efficiency, digitalization, safety and sustainability are our drivers for the modernization of the infrastructures
Slide 5: Strategy execution & Main milestones
Strategy execution & Main milestones EXPERTISE INTEGRATION FROM STRINGING TO TRENCHER FROM STRINGING TO RAILWAY FROM STRINGING TO AUTOMATION From machines for underground Markets saturation for power lines CONSOLIDATION Application of the tension stringing cable laying to digging solutions for elect
Slide 6: Strategic Approach evolution
Strategic Approach evolution 2017 FUTURE THE ONLY INTEGRATED SOLUTIONS PROVIDER IN THE WORLD able to satisfy the infrastructure market's needs through our fully integrated solutions suite TRENCHERS ENERGY RAILWAY ENERGY Wind - Solar Overhead Catenary Smart grids (cable/fiber) Fttx Underground wires
Slide 7: R&D activities & Digitalization Industry 4.0
Focus on R&D projects and digitalization process TESMEC strategic guidelines Adoption of the Industry 4.0 already identified plan by the Italian Government TESMEC 4.0 connectivity & digitalization & new tax incentives in as growth drivers. 2017 Budget Law. > The most developed markets are strongly i
Slide 8: Index
Index > Corporate Strategy > 1Q 2018 Results > 2018 Outlook 3rd May 2018 8
Slide 9: 1Q 2018 Latest key facts
1Q 2018 Latest key facts LAUNCH OF NEW PRODUCTS FULLY CONNECTED (4.0) ENERGYxxx NEW TECHNOLOGIES for overhead power lines stringing operations WITH HELICOPTER > Power Grid agreement ENEL DEVELOPMENTS > Award of new innovative tenders > Cooperation for new markets approach SMT CERTIFIED SOLUTION rea
Slide 10: 1Q 2018 Latest key facts
1Q 2018 Latest key facts UK, SOUTH AFRICA & NEW ZEALAND FTTH JOBSITE ENERGY:xxx Key partnerships FTTH & CABLE Project: > Machines supply > Technical backup, Service and maintenance managers > Jobsite optimization AUSTRALIA RENEWABLE ENERGY PROJECTS > Full service provider: cables + installation MIDD
Slide 11: 1Q 2018 Closing
1Q 2018 Closing GROUP (€ mln) 1Q 2018 1Q 2017 Delta % ENERGY 1Q2018 1Q2017 Delta % REVENUES 46,7 49,8 -6,1% Revenues 9,2 21,9 -57,8% EBITDA 6,1 5,6 8,0% EBITDA 1,2 4,0 -68,8% % on Revenues 13,0% 11,3% % on Revenues 13,3% 18,0% EBIT 2,8 2,5 9,8% % on Revenues 5,9% 5,1% TRENCHERS 1Q2018 1Q2017 Delta %
Slide 12: 1Q 2018 Revenues: sales spread over different geographical area
1Q 2018 Revenues: sales spread over different geographical area INTERNATIONAL SCALE AND EXPOSURE TO GROWING ECONOMIES JOINT WITH A GROWING IMPORTANCE OF THE ITALIAN MARKET 15% 16% 27% 23% 12% 7% 13% 14% 28% 4% 36% 5% Italy Italy: better balance between Export & Domestic market. Europe Middle East BR
Slide 13: EBITDA 1Q 2018
EBITDA 1Q 2018 € mln 10 9 8 7 3,4 5,6 6,1 6 (0,2) 5 4 3 (2,7) 2 1 0 EBITDA Energy Trencher Railway EBITDA 1Q 2017 1Q 2018 1Q 1Q 2017 Positive performance of trencher segment 2018 3rd May 2018 13
Slide 14: EBITDA 1Q 2018
EBITDA 1Q 2018 € mln 10 9 1,2 8 4,6 (0,3) 7 6,1 6 5,6 (1,6) (0,2) (0,1) 5 4 3 2 (3,1) 1 0 EBITDA Revenues Raw materials Cost Personnel Other Equity Capitalized EBITDA 1Q 2017 costs for services costs operating investments R&D 1Q 2018 cost/revenues Expenses Strong increase in marginality 1Q 2017 desp
Slide 15: 1Q 2018 Financial Results
1Q 2018 Financial Results Financial Information (€ mln) 1Q 2018 2017 Net Working Capital 74,3 60,8 Non Current assets 67,6 68,4 Other Long Term assets/liabilities 0,7 0,9 Net Invested Capital 142,6 130,1 Net Financial Indebtness 98,7 85,2 Equity 43,9 44,9 Total Sources of Financing 142,6 130,1 2017
Slide 16: Working Capital evolution
Working Capital evolution € mln 13,7 74,3 80 70 60,8 2,4 (0,2) (0,7) 60 50 40 (1,7) 30 20 10 0 2017 Inventories WIP Trade Trade Other current 1Q 2018 Net Working Receivables Payables ass. / liab. Net Working capital capital Days Days € Mln 1Q 2018 2017 1Q 2018 2017 Trade Receivables 53,6 39,9 103 82
Slide 17: Net Financial Position Evolution
Net Financial Position Evolution OPERATING NET FINANCIAL POSITION € mln 140 120 3,3 85,2 0,9 98,7 100 13,3 80 (4,0) 60 40 20 0 NFP OFCF NWC Capex Int.exp. NFP FY 2017 Net 1Q 2018 Impact of NWC increase 2017 due to the traditional seasonality of the business 1Q 2018 Recovery in the following months 3
Slide 18: Index
Index > Corporate Strategy > 1Q 2018 Results > 2018 Outlook 3rd May 2018 18
Slide 19: Backlog 1Q 2018
Backlog 1Q 2018 Euro/mln BACKLOG 31/12/2017 Sales Q1 2018 In take Q1 Q1 2018 24,4 27,8 9,2 12,6 Energy 66,3 68,5 Trencher 33,4 31,2 101,9 102,1 4,1 Railway 3,9 195,0 196,0 Total 46,7 47,7 3rd May 2018 19
Slide 20: 2018 Trend & Outlook
2018 Trend & Outlook TREND ENERGY: Strong recovery (new product, important tender for energy automation) RAIL: Strong increase: new products and new manufacturing plant BUSINESS TRENCHERS: > Machines: new product launch (Intermat exhibition) > Service: new projects: ▪ cables, green energy ▪ service:
Slide 21: Summary 1Q 2018 Profit & Loss statement - Appendix A
Summary 1Q 2018 Profit & Loss statement - Appendix A Delta vs Profit & Loss Account (€ mln) 1Q 2018 1Q 2017 Delta % 2017 Net Revenues 46,7 49,8 (3,1) -6,1% Raw materials costs (-) (19,8) (24,4) 4,6 -18,7% Cost for services (-) (6,9) (8,1) 1,2 -14,5% Personnel Costs (-) (11,5) (11,2) (0,3) 3,3% Other
Slide 22: Summary 1Q 2018 Balance Sheet - Appendix B
Summary 1Q 2018 Balance Sheet - Appendix B Balance Sheet (€ mln) 1Q 2018 2017 Inventory 70,5 69,9 Accounts receivable 53,6 39,9 Accounts payable (-) (39,7) (39,5) Op. working capital 84,4 70,3 Other current assets (liabilities) (10,1) (9,5) Net working capital 74,3 60,8 Tangible assets 45,8 46,1 Int
Slide 23: Disclaimer
Disclaimer The Chief Executive Officer, Ambrogio Caccia Dominioni, in the absence of the Manager responsible for preparing the company’s financial reports that will take office starting 15 June 2018 declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the acc
Slide 24: www.tesmec.com
www.tesmec.com 3srd May 2018